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Regional And Sectoral Labor Productivity Convergence In Turkey

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  • Bahadir Cem UYARER
  • Engin VOLKAN

Abstract

This paper analyzes regional and sectoral convergence in labor productivity in Turkey for the period of 2004-2011 by using cross section beta convergence analysis, shift-share analysis and Wei –Kang (2006) beta decomposition analysis. Our results show that despite slight improvement in between regions labor productivity heterogeneity, between 2004- 2011 period convergence take place in each sector and gross economy but speed and significance level vary widely. Second, we inquire the sources of found convergence and see that sectoral productivity growth contributed as much as employment flows into more productive regions. With respect to sectors’ contribution; labor productivity improvements in agriculture sector is contributing more than other sectors to the aggregate convergence. Our study differentiates itself from the rest of the literature in three aspects. Firstly, it extends the studied period to 2011. Secondly, it is the first to find regional convergence for industrial, service, and agricultural sectors. Finally, given the aforementioned results, it is the first to decompose the productivity convergence to the components.

Suggested Citation

  • Bahadir Cem UYARER & Engin VOLKAN, 2016. "Regional And Sectoral Labor Productivity Convergence In Turkey," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 16(1), pages 77-92.
    • Handle: RePEc:eaa:aeinde:v:16:y:2016:i:1_7
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    File URL: http://www.usc.es/~economet/reviews/aeid1617.pdf
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    References listed on IDEAS

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    1. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
    2. Tugrul Temel & Aysit Tansel & Peter J. Albersen, 1999. "Convergence and Spatial Patterns in Labor Productivity: Nonparametric Estimations for Turkey," Working Papers 9931, Economic Research Forum, revised Oct 1999.
    3. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 407-443.
    4. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-251, April.
    5. Temel, Tugrul T. & Tansel, Aysit & Albersen, P.J., 1999. "Convergence and Spatial Patterns in Labor Productivity: Nonparametric Estimations for Turkey," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 29(01), pages 1-17.
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